The Wall Street JournalThe Wall Street Journal

Economics tamed the weather. Now the weather strikes back.

By Greg Ip

16 Aug 2023 · 4 min read

informed Summary

  1. The Federal Reserve’s efforts to curb inflation without destabilizing the economy may be impacted by a factor beyond its control: the weather. Scientists predict that an unusually strong El Niño, a recurring weather pattern over the Pacific Ocean, could lead to heat waves, droughts, and a surge in food prices.

In the Federal Reserve’s campaign to bring down inflation without tanking the economy, there’s a key factor over which it has zero control: the weather.

U.S. scientists are predicting that an unusually strong El Niño, a recurring weather pattern over the Pacific Ocean, could drive temperatures up by 1.5 degrees Celsius this fall and winter. Past episodes such as in 2009-10 and 2015-16 have been linked to heat waves and drought around the world and surging food prices.

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